UPSC Static Quizzes July 2026

Answer – (b)

Explanation:

Statement 1 is correct: India is the largest producer, consumer and exporter of turmeric in the world.

More than 30 varieties of Turmeric are grown in India and it is grown in over 20 states in the country.

Statement 2 is not correct: The largest producing states of Turmeric are Maharashtra, Telangana, Karnataka and Tamil Nadu.

Statement 3 is not correct: India has more than 62% share of world trade in turmeric.

Statement 4 is correct: The leading export markets for Indian Turmeric are Bangladesh, UAE, USA and Malaysia.

Additional information: National Turmeric Board was recently notified by the Government of India. It will focus on the development and growth of turmeric and turmeric products in the country.

The Board shall have a Chairperson to be appointed by the Central Government, members from the Ministry of AYUSH, Departments of Pharmaceuticals, Agriculture & Farmers Welfare, Commerce & Industry of the Union Government.

Answer – (d)

Explanation:

About the Standing Deposit Facility: It was introduced in 2018 by the RBI through an amendment to the RBI Act.

Statement 1 is correct: It is an additional tool for absorbing liquidity without any collateral. By removing the binding collateral constraint on the RBI, the SDF strengthens the operating framework of monetary policy.

Statement 2 is correct: The SDF will replace the fixed rate reverse repo (FRRR) as the floor of the LAF corridor.

The LAF corridor will be symmetric around the policy repo rate with the MSF Marginal Standing Facility rate as the ceiling and the SDF rate as the floor.

Access to SDF and MSF will be at the discretion of banks, unlike repo/reverse repo, OMO and CRR which are available at the discretion of the Reserve Bank.

Answer – (d)

Explanation:

About Green Deposits: It is a fixed-term bank deposit that allows investors to fund ecologically friendly projects. The Reserve Bank of India (RBI) launched the Green Deposit Scheme in June 2023.

Statement 1 is not correct: It is not mandatory for the regulated entities (REs) to raise green deposits.

But in case REs intend to raise green deposits from their customers they should follow the framework prescribed.

Statement 2 is not correct: REs must pay interest on green deposits to their customers in accordance with the agreed-upon terms and circumstances and the aforementioned guidelines.

Statement 3 is not correct: The green activities/projects financed under the framework can be classified under priority sector if they meet the requirements laid down in priority sector lending (PSL) guidelines of RBI.

Answer – (d)

Explanation:

About the International Monetary Fund: It is a global organization that works to achieve sustainable growth and prosperity for its member countries. It is governed by its member countries. One of the IMF's most important functions is to make loans to countries that are experiencing economic distress to prevent or mitigate financial crises.

The IMF lending process is flexible. Countries that maintain a commitment to sound policies may be able to access resources with no or limited conditionality.

Lending instruments available under the IMF:

Resilience and Sustainability Trust: It helps low-income and vulnerable middle-income countries build resilience to external shocks and ensure sustainable growth, contributing to their longer-term balance of payments stability.

Poverty Reduction and Growth Trust: It is the IMF’s main vehicle for providing concessional financing currently at zero interest rates to low-income countries (LICs). PRGT-supported programs also play a central role in creating the environment for successful debt resolution in distressed countries.

Rapid Credit Facility: It provides fast concessional financial assistance to low-income countries (LICs) facing an urgent balance of payments need. The RCF is one of the facilities under the Poverty Reduction and Growth Trust (PRGT) that provide flexible financial support tailored to the diverse needs of LICs.

Extended Fund Facility: It provides financial assistance to countries facing serious medium-term balance of payments problems because of structural weaknesses that require time to address.

Stand-by Credit Facility: It provides financial assistance to low-income countries (LICs) with short-term balance of payments needs. The SCF is one of the facilities under the Poverty Reduction and Growth Trust (PRGT).

Stand By Arrangements: The Stand-by Arrangement (SBA) provides short-term financial assistance to countries facing balance of payments problems.

Hence Option (d) is the correct answer.

Answer – (d)

Explanation:

About Vostro account: It is a type of bank account that is held by a foreign bank at a domestic bank in the domestic bank’s currency. Hence statement 1 is not correct.

About Nostro account: It is a bank account that a bank holds in a foreign country’s currency at another bank in that country. Hence statement 2 is not correct.

This type of account is used by banks to facilitate foreign exchange transactions and to hold funds that belong to their customers who have accounts in foreign currencies.

LORO account: It is an account that one bank holds with another or third-party banks.